MoneyTap to offer credit worth Rs 300 crore by March 2018

Bengaluru-based fin-tech startup, MoneyTap, has raised $12.3 million (around Rs 79 crore) led by Sequoia India. Existing investors NEA and Prime Venture Partners also participated in this round. This brings the total capital raised by the company to $12.3 million.

The startup will use the funds to expand its app-based consumer credit line in India by expanding to 50 cities in India by the end of 2017. It will also partner with six banks and NBFCs. MoneyTap is aiming to issue credit lines worth Rs 300 crore by the end of the current fiscal year, the statement added.

Founded in September 2016, MoneyTap provides credit services through an app. It has tied up with banks to offer money on demand with zero collateral and without guarantors.

Available on the Google Play Store, the startup evaluates a user’s eligibility, after which it provides an instant, real-time decision on the application along with the amount the user is eligible for. Users can borrow between Rs 3,000 and Rs 5 lakh or up to their maximum eligibility limit. They can also decide their own equated monthly instalment plans with flexible payback periods ranging from two months to three years.

Bala Parthasarathy, Co-founder, MoneyTap, said, "We deeply believe that the rapidly growing middle-income group in India is largely underserved by financial institutions. They are app-savvy and very demanding."

Abheek Anand, Principal, Sequoia India, said, "Consumer credit in India is highly under penetrated and is a complex problem to solve. MoneyTap combines an experienced team with a thoughtfully designed product, and their strong early traction is a testament to the efficacy of their approach to address this massive market opportunity."